July Jobs Likely Keeps Fed in Wait and See Mode on Potential Hikes

1037 ET - "The July jobs report provides more noise than signal," says RSM's Joe Brusuelas. He cites the dichotomy between the 23,000-topline loss in jobs versus the decline in the unemployment rate to 4.1%. Brusuelas says the reading strongly implies seasonal issues at the Bureau of Labor Statistics and noise around the post World Cup labor market that included sharp declines in leisure, hospitality, and retail employment. "Moreover, the outsized decline of 50,000 in state and local employment looks highly suspect in our evaluation," he says. Brusuelas believes today's report won't move the needle at the Fed or among investors because of the inconsistencies in the data. "If anything, this likely will provide support to those at the central bank that are counseling patience on hiking rates," he says.